SBA rules · SOP 50 10 8.1
Can you have more than one SBA loan?
Yes, an applicant and its affiliates may have multiple SBA loans outstanding, subject to statutory and program aggregate limits on SBA guaranty exposure and gross debenture amounts.
Quoted from SBA SOP 50 10 8.1Every quote checked word for word
In detail
- 7(a) guaranty exposure: The total outstanding SBA guaranty to any one business and its affiliates cannot exceed $3,750,000 across all 7(a) loans, including revolving lines of credit, though Export Working Capital Program (EWCP) and International Trade loans have a higher maximum guaranty of $4,500,000.
- Affiliated loan maximums: If affiliation exists, SBA loan maximums apply to the applicant and all affiliates combined as if they were a single business.
- SBA Express aggregate limit: An applicant and its affiliates are capped at a gross aggregate of $500,000 across all outstanding SBA Express, Community Advantage Pilot, Community Express, and Patriot Express loans.
- 504 debenture limits: Gross debentures are capped at an aggregate outstanding balance of $5,000,000 for a small business and its affiliates, but Eligible Energy Public Policy Projects and Small Manufacturer Projects may receive up to $5,500,000 per project without energy debentures reducing the general $5,000,000 cap.
- Combining 7(a) and 504 loans: Borrowers may hold both 7(a) and 504 loans simultaneously, but the 7(a) loan should be approved first due to its lower maximum guaranteed amount, and existing loans count toward maximum exposure calculations.
The source
What the SOP says
“The maximum dollar amount outstanding of SBA’s guaranty to any one business and its affiliates must not exceed $3,750,000 (13 CFR § 120.151).
“When calculating the maximum guaranty percentage available to a Borrower and its affiliates, the Lender must include the approved loan amount and any existing 7(a) or 504 loans, including revolving lines of credit.
“If affiliation exists, SBA’s loan maximums apply to the Applicant, including all affiliates, as if all were a single business.
“The maximum guaranty amount is $4,500,000.
“The maximum aggregate SBA Express loan amount is $500,000 (gross), inclusive of all outstanding SBA Express, Community Advantage Pilot loans, Community Express, and Patriot Express loans the Applicant and its Affiliates may have.
“For all 504 Projects, the gross debenture is limited to an outstanding maximum balance of $5,000,000 in the aggregate for each small business concern, including its affiliates, except for Eligible Energy Public Policy Projects and Projects for Small Manufacturers in c. and d. below.
“$5,500,000 maximum for each eligible project. However, the total outstanding Gross Debentures issued for a small business concern, including affiliates for Eligible Energy Public Policy Projects do not reduce the $5,000,000 limit for each small business concern for other 504 Projects.
“When an Applicant applies for any combination of 7(a) and 504 loans, the order in which the loans are approved determines the maximum loan and guaranty amount available. Due to statutory requirements, the 7(a) loan should be processed and approved first.
“Borrowers may finance multiple Projects simultaneously using separate 504 loans, subject to 504 Debenture limits.
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This page quotes the SBA's Standard Operating Procedure 50 10 8.1. Lenders can ask for more than the SBA minimum. It is general information, not a loan approval or legal advice.